Minimum Wage Increased
January 13, 2020
Country / Territory
Share
At a Glance
- Effective January 1, 2020, the minimum wage for local and foreign workers in Slovenia increased to EUR 940.58 per month, up six percent from 2019.
- Foreign workers typically receive higher salaries as their salaries must be comparable to a local worker. However, employers are advised to check current permit holders’ salaries to ensure compliance.
- Notably, a new definition of minimum wage came into effect in Slovenia on January 1, 2020, practically making benefits, allowances, collective bargaining amounts, bonuses and any other payments other than base salary not eligible for inclusion in the minimum salary calculation.
The situation
Effective January 1, 2020, the minimum wage for local and foreign workers in Slovenia increased to EUR 940.58, up six percent from 2019. The exchange rate at the time of publication of this alert is 1 EUR to 1.11 USD.
A closer look
- Existing employees. Employers of foreign nationals must increase foreign nationals’ salaries to comply with the new rule.
- Initial and renewal applications. Employers of foreign nationals seeking to obtain or renew work authorization on or after January 1, 2020 must increase foreign nationals’ salaries to comply with the new rule. Immigration applications that do not meet the minimum wage will be refused.
- Pending applications. Employers of foreign nationals with pending work authorization applications as of January 1, 2020 must increase foreign nationals’ salaries to comply with the new rule. Immigration applications that do not meet the minimum wage will be refused.
Reminders on other requirements
- Benefits and allowances. Notably, a new definition of minimum wage came into effect in Slovenia on January 1, 2020, practically making benefits, allowances, collective bargaining amounts, bonuses and any other payments other than base salary not eligible for inclusion in the minimum salary calculation.
- Local salary rate. As before, salaries must also be comparable to a local worker in the same position, per the applicable collective bargaining agreement.
- Currency. As before, employers are required to pay the salary in EUR regardless of payroll location.
Background
Slovenia has seen a gradual increase of minimum wage levels from 2019-2021 following the 2018 national election, as a result of increased public and political pressure to raise wages in Slovenia. For 2019, salaries were increased by 5.2 percent.
Looking ahead
Starting in 2021, the minimum wage level in Slovenia will be calculated annually based on a formula involving minimum monthly living expenses, requiring the minimum wage for full time employment to exceed minimum monthly living expenses by at least 20 percent. Fragomen will report on related developments.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
